BlackRock Inc. is launching two active sustainable exchange traded funds, highlighting the increased focus on climate-aware strategies from global institutional investors.
The two funds have raised more than $1.5 billion and invest in large- and mid-cap companies that the investment firm believes are better positioned to benefit from the transition to a low-carbon economy, according to a press release. The funds leverage a range of structured and unstructured data sources, advanced analytics and research-driven insights across five key areas — fossil fuels, clean technology, energy management, waste management and water management — to derive a unique low-carbon economy transition readiness score for each company.
In the release, Larry Fink, chairman and chief executive officer of BlackRock, said the energy transition is central to all companies’ growth. “Winners and losers will emerge in every sector based on each company’s ability to adapt, innovate and pivot their strategies toward the low-carbon economy. Many of our clients share this conviction and we’re helping them be at the forefront of the energy transition through next-generation climate analytics and sustainable strategies. We believe that this combination will lead to better outcomes for them and society as a whole.”